Econ Unit 2 Review

What economic indicator measures the value of a nation’s currency? 1. What economic indicator measures the value of a nation’s currency?

2. What does GDP measure?

3. Why are high foreclosure rates considered an indicator of economic contraction?

4. Which of the following does the Federal Reserve have the most direct control over? Employment Taxation Money Supply Stock Value

Name one way to minimize the risk involved with investing in stocks. 5. Name one way to minimize the risk involved with investing in stocks.

6. What is the DOW Jones?

Describe the overall trend in GDP over time. 7. Describe the overall trend in GDP over time.

Name and describe the 4 stages of the business cycle. 8. Name and describe the 4 stages of the business cycle.

9. Explain one use of the New York Stock Exchange (NYSE) for an average American.

A friend argues that the American economy is struggling. 10. A friend argues that the American economy is struggling. Use information about economic indicators that would refute this claim.